ENVOY TO REDUCE STAFF
By Adnews Staff
Toronto-based Envoy Communications Group Inc. will cut 15% of its staff as part of a restructuring plan to be implemented during the first and second quarters of this year. Envoy has also closed its satellite offices in Stockholm and Strasbourg. Clients in those two markets are now being serviced from Toronto and London. "This past quarter has been a challenging one for Envoy," said Geoff Genovese, chairman and chief executive officer of the agency. Regarding the firm's first fiscal quarter results, Genovese said that branding and design company Watt International and ad agency John St. both showed strong performances. However, New York-based ad agency Hampel Stefanides and Toronto-based Sage Information Consultants posted disappointed results for the quarter. Revenues for Envoy's first fiscal quarter were $16.6 million, down from $21.8 million the year before. According to the company, anticipated annualized savings from its restructuring plan are expected to be in the area of $6.9 million.